If you are considering opening a new Bitcoin, Ethereum (or other cryptocurrency) IRA or 401k, or rollover an existing IRA, Roth IRA, 403b or 401k to a Bitcoin/Ethereum IRA, then your first step is to choose a reputable and trustworthy Cryptocurrency IRA company to work with. As this is a relatively new (and high risk) field, there is a limited amount of companies to choose from. Whether you're interested in Bitcoin, Ethereum, Litecoin, Ripple or any other cryptocurrency, it is important to work with a company or custodian that has a successful track record with retirement investors and the ability to answer your questions and offer the best options based on your objectives and budget. When done wrong, your cryptocurrency IRA can end up costing thousands of dollars in penalties and even get you in trouble with the IRS, which is why it is imperative that you work with a company that has mastered the process and is able to answer ANY question you may have with certainty and accuracy.
Below is a useful comparison chart which will guide you in making the best choice. We have obtained the most current ratings for all three of the companies using well-respected review boards from the likes of BBB, BCA, TrustLink and more. You can see all of the relevant details in an expanded review by clicking on the “View Full Review” button beside each of the companies. It would be a good idea to print a copy of this webpage for any future reference needs too.
|Catering To||International Investors||US Only||US Only|
|IRA Custodian||New Direction IRA||Kingdom Trust||Kingdom Trust|
|Storage Type||Cold Storage||Multisig Online Wallet||Online Wallet|
|Office Location||US, Canada, Dubai||US Only||US Only|
|Read Full Review|
Both Bitcoin and second digital currency Ethereum are all the rage nowadays. As this chart below shows, the value of the leading cryptocurrency has risen dramatically both year to date and over the last year:
Many experts predict that the price potential for both Bitcoin and Ethereum over the long term could be enormous. The analyst Van-Peterson of Saxo Bank correctly called the Bitcoin price move from approximately $750 to $2,000 in the past year, as did tech guru Kim Dotcom. Now Van-Peterson is forecasting the price of the world's largest cryptocurrency hitting $100,000 in ten years or less. This would represent an incredible 3,483 percent increase off of its recent all time highs, Van-Peterson said.
To arrive at these dramatic predictions, Van-Peterson assumes that all of the main surviving cryptocurrencies will make up 10 percent of the average daily volumes of Forex currency exchange trade within 10 years. The ADV of the foreign exchange is presently around $5 trillion per the Bank for International Settlements. At 10 percent of $5 trillion, this would give an ADV of $500 billion.
Van-Peterson says that Bitcoin will hold 35 percent of the cryptocurrency market share. That would give them $175 billion in average daily volume, or amount of BTC traded each day on world forex markets. Van-Peterson assumes that the total market cap of the bitcoin will be 10 times its ADV, which would amount to a $1.75 trillion in market cap for the leading cryptocurrency. The analyst projects around 17 million total (out of the 21 million fixed limited maximum total supply) BTC will exist in 10 years. That only represents a gain from today's 16.3 million BTC. By dividing the assumed $1.75 trillion with 17 million bitcoins, you arrive at a per BTC value of slightly more than $100,000 each. Van-Petersen stated:
“This is not a fad, cryptocurrencies are here to stay. There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”
Ethereum has already proven itself in a number of strong ‘industrial” types of digital applications in the field of smart contracts (especially pertaining to electricity account management and payment and cash transfer transactions), which means it has secured its place as one of the other surviving one or two cryptocurrencies. Thanks to the dozens of companies involved in the EEA Enterprise Ethereum Alliance (including Microsoft, Intel, BP, JP Morgan, and numerous international banks and other companies), Ethereum should only grow stronger with time.
Even if Van-Peterson's lofty projections on Bitcoin are a little optimistic in the end, the rapid and apparently limitless growth in the value of Bitcoin helps to explain why many individuals and investors are beginning to think seriously about the cryptocurrency variation on gold for their long-term retirement holdings. Others have turned to Ethereum as the new digital version of silver due to its myriad of applications.
We would like to remind you that although Bitcoin, Ethereum and other cryptocurrencies are very promising for the future, their value can drop significantly. We have seen Bitcoin drop 30%+ in a matter of hours before. Unlike physical Gold and Silver, Cryptos are not regulated and not backed by anything tangible so invest with caution and do not invest any sum of money that you could not afford losing.
Besides the possibility of Bitcoin and the other major cryptocurrency Ethereum soaring to the proverbial stratosphere in value over the coming decade, there are a number of other solid, viable reasons to add these electronic currencies to a well-diversified retirement portfolio that already includes stocks, bonds, and physical bullion. The so-called digital gold (bitcoin) and digital silver (ether) have all of the following significant advantages over traditional fiat (backed by government faith, trust, and credit only) currencies:
N.B.: Whether you decide to invest or not, if it is important to speak to your financial advisor and do your own due diligence about this new asset class. Again, this is a highly speculative type of investment. Do NOT invest any sum of money that you couldn't afford losing.
The table above is intended to assist you in comparing the reviews and ratings for the best Bitcoin/Ethereum IRA companies. When choosing a firm, it is sensible to consider the following three characteristics:
It is simply better to go with a firm that boasts as many positive reviews from its current clients as possible. Trusted review authorities such as the BBB Better Business Bureau, BCA Business Consumer Alliance, and Trustlink are most important. It is also good to consider whatever feedback is available from reputable websites including Yelp, Complaint Board, and YP. This will speak volumes about the customer service and level of quality from these firms.
The #1 risk when it comes to investing in an intangible digital asset like bitcoin is the hackers. Ask your provider how they plan to mitigate hacking and malware risks? Do they print your private key using an offline machine? Do you they use cold storage? Do they use the multisig feature? Ask them for all the ways they are protecting their clients' assets and see if they have all their bases covered.
There are clients who have waited even months to have their IRA accounts established and ready for first purchases. With the fast moving cryptocurrency markets and especially bitcoin and Ethereum prices these days, this could mean paying even hundreds of dollars more for a handful of BTC or Ether tokens, as this Ethereum chart clearly demonstrates below:
When you consider all of the criteria we covered above, Regal Wallet (from Regal Assets) and Bitcoin IRA come out on top, not just because of their high industry ratings but also because of the fact that they handle the entire process from end to end. Broad Financial does not handle the entire process. They simply help you set up an LLC and then let you handle the process on your own which means you have to find your own custodian, exchange and wallet. The main issue with that is that many wallets are not accepting business customers, and those that will will either take weeks to respond or will place limitations on new accounts which means you cannot acquire large quantities of coins. Coinbase, for instance, will limit new accounts to $150 per day. Broad Financial is a great company to use if you're an expert and already have a wallet with high limits, but if you're a beginner, it might be better to choose one of these two:
Regal Assets recently launched their Cryptocurrency IRA service under the name Regal Wallet. The service allows investors to rollover an existing retirement account such as an IRA or 401k into a separate Cryptocurrency IRA. They use offline cold storage to ensure your key is never shared with anyone. The process is also fully insured for the market value of your IRA. The company boasts a Better Business Bureau rating of A+, a Business Consumer Alliance rating of AAA, and more than 1,000 five star reviews from trusted review board TrustLink. Famed Inc. 500 has ranked Regal Assets at their 20th position, which speaks volumes about the integrity, customer satisfaction, and quality of Regal Assets. You can obtain more information about Regal Assets by calling them at 1-877-205-1104. Alternatively, you might:
Bitcoin IRA (BitcoinIRA.com) is also a great company to consider if you want to include cryptocurrencies in your IRA or 401k. They were the first company in the industry to offer digital currencies to retirement investors, and currently support Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash and Ethereum Classic inside retirement accounts. The company promised to be adding more IRA approved digital currencies and altcoins in the near future. BitcoinIRA has been praised on top financial media outlets such as CNBC, the Washington Post, Forbes, Barron's and many other reputable newspapers and magazines. We strongly recommend that you request BitcoinIRA's free bitcoin investment kit that explains everything you need to know about the investment and how to get started. Alternatively, you can skip the kit and go straight to the account opening page if you want to get started:
Disclosure: we would like to remind you that we are a 100% independent site and that none of us work for any of the companies reviewed on this page. We recommend that you always do your due diligence when choosing a company to work with. Call a few, and request their free kits to get a better idea of their offering. Also, keep in mind that digital currencies are a highly volatile and risky investment. You can earn big but you can also lose big. Do not invest any amount that you couldn't afford to lose.